IMIDRO and Kuwait Steel to build steel complex

IMIDRO and Kuwait Steel to build steel complex

(IMIDRO) - Iranian Mines and Mining Industries Development and Renovation (IMIDRO) and Kuwait Steel Company will establish a steel complex to be built in four stages in Persian Gulf Mining and Metal Industries Special Zone (PGSEZ).

Deputy Minister of Industry, Mines and Trade and IMIDRO Chairman, Mehdi Karbasian and Managing Director of Kuwait Steel  Company, Avvad Al Khaledi signed a memorandum of understanding (MOU) for construction of the steel complex.

In the first stage of the cooperation, a direct reduced iron (DRI) facility with capacity of 1.6 million tons will be built, in second stage a steel mill with capacity of 1 million ton, in third stage a rolling mill with capacity of 1 million ton and building a pelletizing plant with capacity of 5 million tons would be final stage of joint investment, said IMIDRO Chairman after signing of agreement.

Mehdi Karbasian indicated that IMIDRO is committed to provide the land for construction of mills and supply 100 million cubic feet of gas and 200 megawatt power needed for them. Moreover facilitating import of raw materials and export of products, using of customs services, tax breaks and other services designing to attract and protect foreign investment would be applied to these projects.

Avvad Al Khaledi said the fund for implementing of the projects would be financed by financial institutions of Kuwait with low interest rate.